Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) plans to acquire the entire shares of Esmax Distribusción SpA from Latin America-focused private equity firm Southern Cross Group.
The potential acquisition will mark Aramco’s first Downstream retail investment in South America, according to a press release.
In line with its strategy to boost its downstream value chain, the transaction will enable the Saudi oil giant to secure outlets for its refined products and expand its retail business worldwide.
Meanwhile, the deal is subject to certain customary conditions, including regulatory approvals.
Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. Its national presence includes retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant.
Mohammed Al Qahtani, Aramco Downstream President, said: “We are excited by the opportunities it presents, creating synergies with our extensive trading and manufacturing systems.”
“Moreover, it creates a platform to launch the Aramco brand both in Chile and South America more broadly, unlocking significant potential to capitalize on new markets for our products,” Al Qahtani continued.
Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. Its business includes retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant.
Last July, the listed company joined forces with Saudi Basic Industries Corporation (SABIC) and French petroleum firm TotalEnergies to develop pyrolysis oil for the first time in the MENA region.
In the first half (H1) of 2023, Aramco logged net profits after Zakat and tax worth SAR 232.35 billion, compared to SAR 329.67 billion in H1-22.